Facing a new decade of more volatile costs, economic uncertainty, and shifting policy decisions, industrial manufacturers are not wasting any time.

Now more than ever, they are rethinking the fundamentals of their business to fuel new sources of revenue and profit growth, rather than being left behind.

However, such efforts cannot just focus on designing better products, boosting operational efficiency, and maximizing business productivity. By 2025, it is estimated that more than 50 percent of the revenue of industrial manufacturing companies will come from services delivered around, and based on, highly customized, digitalized products. These services will span from simple break-fix services and value-add services to complex models such as equipment or outcome as a service and data monetization.

How can industrial manufacturing businesses build their digital muscle to deliver the personalized solutions that customers want and are willing to pay a premium for? Most customers find that the SAP Model Company service for Industrial Manufacturing & Components is an excellent way to get started.

What is SAP Model Company for Industrial Manufacturing & Components?

SAP Model Company for Industrial Machinery and Components - Anita Heinrich

SAP Model Company for Industrial Manufacturing & Components is one of a portfolio of interoperable model company services, covering more than 25 lines of business and industries. The prebuilt reference solution provides a strong focus on end-to-end processes based on proven best practices gained through a decades-long history of success with industrial manufacturers all over the world.

Based on the next-generation enterprise resource planning (ERP), SAP S/4HANA, the service sets a foundation for a digital core that is needed to adopt most of today’s intelligent technologies such as artificial intelligence (AI), machine learning, and enterprise predictive analytics. It supports general business requirements as well as industry-specific scenarios. For example, there is a strong focus on configure to order, engineer to order with project execution – which spans across business areas from sales and distribution to procurement – production, extended warehousing, order settlement, and service management.

Delivered with business content accelerators, SAP Model Company for Industrial Manufacturing & Components enables businesses to adopt new expertise, processes, and best practices throughout their initiatives – from discovery and exploration to implementation and optimization. The accelerators include a diverse set of tools, including business process flows, demo scripts, and configuration documentation, which are available in SAP Solution Manager 7.2. The demo scripts contain a detailed description of every process step as well as use cases and master data, allowing users to reference the potential of proven industry-specific processes.

A 10-day business process workshop is available for a deep dive into the model company content. Undivided access to SAP experts can help businesses better understand which processes and scenarios enabled by SAP Model Company for Industrial Manufacturing & Components are relevant and smoothly hand over the content to their implementation teams.

Build Your Digital Muscle Confidently with Fast Innovation

Whether undergoing a new implementation of migrating or converting existing business systems to a new deployment environment, SAP Model Company for Industrial Manufacturing & Components is designed to help companies accelerate projects while reducing potential risks.

The preconfigured nature of the model company service helps ensure that digital investments meet the needs of business without customization. This fit-to-standard approach allows businesses to assess system capabilities early on, paving the way for fast implementation of value-adding business applications that leverage and enhance proven best practices.

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Anita Heinrich is a senior consultant for SAP Innovative Business Solutions.